Mr. Boyadzhiev, as representative of one of the leading investment companies in Bulgaria, what are your observations on the investment activity in our country?
In the last year there has been a noticeable activity on the market and a penetration a new foreign investors in Bulgaria. The business environment is improving and more and more international companies are investing here. Such an example is the global hotel chain InterContinental, to which Galaxy Investment Group is a key partner in Bulgaria. The investors are looking for tax reliefs, cheaper labour, transparency, enforcement of European legislation and economic stability. As a member of the European Union, Bulgaria is a gateway for the companies towards the free European market.
On the other hand, the local business gives more added value to the services it offers and this is its main driving force at the moment. But the most active sector which has attracted the most investments is the area of information technologies and outsourcing.
Which are the main challenges facing the Bulgarian business according to you?
Many challenges facing the investors but the main are connected to the labour market. The absence of qualified workforce in some sectors of the Bulgarian economic implies more liberal terms of the legislative and regulative authorities towards the possibilities to attract workers from third countries.
That’s why, we, Galaxy Investment Group, as major employer, welcome the approved by the National Assembly at the end of February amendments in the Labour Migration and Labour Mobility Act, which amendments alleviate the administrative procedures and remove number of obstacles to provide employment of qualified workers from third countries. We consider this as positive signal to the investors and employers in Bulgaria and a serious request to overcome the risks of economic overloading because of the declining share of the population in active age as a result of the immigration and demographic processes. Fortunately Plovdiv as a University, Economic and Cultural Center consisting of young population still stands as oasis against the background of the alarming demographic trends in the country.
Less than a month ago a prestigious ranking of Financial Times “European Cities and Regions of the Future 2018/19” selects Plovdiv among the most attractive locations for future foreign investments. What is your prognosis for the development of the industrial areas market in Plovdiv and the region?
The city has all the necessary resources and potential for development – excellent location, very good transport connectivity, human capital and good educational institutions. The key companies increasingly choose Plovdiv as a base for their industrial and logistic business activity because of the developed infrastructure and the production capacity in the zone. Proof of this is the realized transactions in Industrial Park Markovo. It has very convenient location – next to the Plovdiv ring road and just a few miles away from Trakia highway. In addition the terrain, which has total area of 158 000 square meters, offers different possibilities for development, depending on the needs of the future investors. The project is extremely attractive as for small and major productions and companies thanks to the different sized plots and their possibility to be merged or divided. It is the presence of such factors that attracts major world producers in the region.
How did Plovdiv managed to turn into the economic hub of Bulgaria?
Besides the excellent location, well-developed infrastructure and low production costs, Plovdiv attracts more and more local companies and major world producers from different industries because of the university profile and qualified workforce. This led to enhanced search of office areas, which has to meet particular criteria. For this reason Galaxy Investment Group realized Office Park Plovdiv, which covers all requirements for building class A. The increased interest in the project became a reason to consider its expansion.
A good sign that the city has a serious potential to attract business is the increased number of mortgage transactions. As catalyst in this direction, factors as low credit interests, the relative political stability and economic growth in the country, the gradual growth of the prices in the sector may be referred to, so as the more quality offers in “residential construction” sector.
What is your prognosis for the market?
I think that the activity of the buyers will depend primarily on the behaviour of the banks. But the overall trend is the real estate market to remain among the most attractive ones and the searching will be precisely in the direction high qualitative residential projects. That’s why Galaxy Investment Group as a company, complying with the key factors of the business sphere, in which it develops, started the construction of new residential park named Royal Garden, which purpose is to offset exactly the shortage of such type projects in one of the most sought after regions of the city.
Source: Economy Magazine